California Unions, Consumer Groups To Launch Campaign Opposing Gov. Schwarzenegger's Health Care Proposal

Main Category: Health Insurance / Medical Insurance
Article Date: 17 Oct 2007 - 7:00 PDT

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A coalition of California labor unions and consumer groups on Wednesday will launch a campaign against Gov. Arnold Schwarzenegger's (R) revised health care proposal, which coalition members say is too costly for many workers, the Los Angeles Times reports (Rau, Los Angeles Times, 10/16). Schwarzenegger last week introduced a revised $14 billion proposal that would require all state residents to obtain health insurance, through employers, by purchasing it individually, or by enrolling in a public program. The state would subsidize coverage for individuals with annual incomes less than $25,525 and for families with annual incomes less than $51,625, according to the proposal. Lower-income workers who do not qualify for the subsidies but whose health insurance costs exceed 5% of their family's income would receive a tax credit (Kaiser Daily Health Policy Report, 10/10).

The coalition, which includes most unions and the consumer groups Health Access California and Consumers Union, plans to argue that the proposal is unaffordable for many residents. Unions say that the income thresholds -- which would phase out subsidies at $72,275 for a family of four -- are at least $10,000 too low, according to the Times. The coalition also plans to distribute to elected officials public opinion poll results showing support for the unions' position. In addition, the coalition plans to target the state Health and Human Services Agency secretary, who under Schwarzenegger's proposal would be granted the authority to decide which benefits insurers must provide, as well as what kinds of data hospitals must release publicly. According to the Times, labor groups are "threatening" a ballot initiative that would include a requirement that employers contribute most of the cost of coverage for their workers.

According to the Times, "The campaign represents a break from labor leaders' strategy, which had been to encourage Schwarzenegger's efforts while gently prodding him in their direction." Art Pulaski, head of the California Labor Foundation, said, "The year for health care reform has been a failure, and it has largely been a failure because of the governor."

However, the campaign could "backfire by turning voters against big changes to the state's health care system, including methods favored by unions," and it could "undermine whatever goodwill there might be in health care negotiations between Schwarzenegger and Democratic lawmakers long aligned with unions," the Times reports (Los Angeles Times, 10/16).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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